U.S. Treasury yield continues to be depressed

The U.S. Treasury is set to offer $69 billion of notes and bonds today, right as the 30-year Treasury yield crosses below 3.5% for the first time in nearly a year. Yields continue to be depressed following increased violence in Ukraine, weak PMI data from China and falling labor force participation in the United States.

Raising money at such low rates is obviously beneficial to the Treasury’s balance sheet but ultimately the Federal Reserve will need bond yields to rise to feel comfortable in a post-QE world.